U.S. field production of crude oil surged to the highest level in more than 17 years during the first week of October, when almost 6.6 million barrels per day were produced domestically according to new data released this week by the Department of Energy’s Energy Information Administration. Crude oil production in the U.S. hasn’t been that high since May of 1995, see chart above.
As a result of the surging domestic shale oil production this year in North Dakota and Texas, net oil imports fell to below 42% during the first nine months of this year, which is the lowest level of net oil imports for the U.S. in 20 years going back to 1992.
And several announcements this week by energy-giant Continental Resources suggest that America’s energy bonanza will continue in the coming years:
1.”Continental Resources Inc. says a shale-oil discovery in Oklahoma may add the equivalent of 1.8 billion barrels of crude to the company’s reserves as it drills more than 2,000 wells in coming years.”
2. “Continental Resources announced a new five-year growth plan to triple production and proved reserves by year-end 2017. According to its strategic growth plan, the Company plans to generate average production of 300,000 barrels of oil equivalent per day in 2017 (from the current level of 95,000 bpd).”
As I’ve mentioned previously, America’s booming energy sector has emerged in recent years as the strongest single sector of the U.S. economy, and continues to deliver a powerful energy-driven stimulus to the nation’s otherwise struggling, sub-par economy. Along with the surging domestic oil output comes energy prosperity in the form of thousands of high-paying shovel-ready direct and indirect jobs, increased construction activity for housing, millions of dollars in royalty payments to farmers and landowners, and greater energy independence.